Avid traveler Laura Bowler is cutting back on her vacation spending, but that doesn’t mean she’s skipping resort trips.
The New York resident says she’s currently cutting back on her spending after spending more than she expected in 2023, including on travel. She’s using travel hacks and perks to cut some costs, and she’s one of a growing number of people turning to hotel day passes as a cheaper option for relaxing.
“It’s a nice way to escape reality and feel like you’re in a five-star hotel,” Bowler said, “but you can’t afford to stay there.”
Hotel and resort day passes allow guests to use amenities without booking a room, and Bowler said she has booked daybeds and poolside service, and also found a pass that provided a room for her husband to work on his laptop.
Hotels and third-party partners are making day passes more accessible to bridge the gap between travel-minded consumers and luxury prices.
According to CoStar, a global provider of real estate data, analytics and news, the typical price for a luxury hotel room in the U.S. from Jan. 1 to April 6 is about $400 a night. This rate is about 1% higher than the same period a year ago.
Luxury hotel rates for July are expected to be 85% higher than the same month in 2019, before the coronavirus pandemic, according to luxury travel company Virtuoso.
“People are starting to think about their travel budgets again,” said Haley Berg, chief economist at travel site Hopper. “They’re prioritizing vacation spending over consumer goods.”
In a July 2023 survey by Booking.com, more than 60% of respondents said the cost of living will determine their travel plans for 2024, and just over half said they are likely to spend money on upgrading their accommodation.
According to a press release about the survey from Booking.com, the majority of U.S. travelers would be happy to purchase a day pass to access a five-star hotel’s amenities without staying the night. The survey involved nearly 28,000 adults from 33 countries who said they plan to travel in the next 12 to 24 months.
Berg said consumers who indulged in splurges on trips after COVID-19 restrictions were lifted fuelled the “revenge travel” trend, boosting demand for luxury accommodation. Now, he said, that trend is “mostly over” with many travellers travelling on tight budgets.
Berg said the day passes “give people exactly what they want” and provide another revenue stream for hotels.
“Hotels can get an additional revenue stream by offering the same thing they already have,” she said.
One such hotel is Virgin Hotels New York City in Manhattan’s Koreatown neighborhood. On May 8, the hotel opened its rooftop pool for the second time, offering it as an option for day guests.
The pool, lined with cerulean blue tiles and black-and-white lounge chairs, offers views of the Empire State Building and the city skyline.
Guests can reserve a pool lounge chair or upgrade to a cabana for up to four guests, which includes complimentary service and snacks such as wine and fruit. Pool Club Day Pass users can enjoy a dedicated servery, depending on their selection. Pool Club Day Passes start at $130.
“Everyone needs a little escape,” said Sarah Payton, the hotel’s director of partnerships and programming.
In May 2023, the hotel partnered with ResortPass, a website that offers discounted day passes to luxury hotels, resorts, and spas.
Launched in 2016, Resort Pass has 95% of the day-trip market, according to the company, and has partnerships with more than 1,300 luxury hotels, including the Waldorf Astoria, JW Marriott and Fontainebleau.
The company claims its day-guest platform serves more than 3 million users and offers day pass access in more than 250 cities for as low as $25.
“What we can really do is give people a way to vacation more locally without having to go far,” Resort Pass CEO Michael Wolf said. “We think this can complement and potentially replace other types of travel.”
The average Resort Pass customer pays about $165 for an all-day pass, according to the company. Resort Pass customers who buy day passes tend to spend more on poolside and other hotel amenities than overnight guests, Wolf said.
“Our guests spend an average of more than $250 on hotel grounds, and in many cases much more,” he said.
Wolf said Resort Pass is currently working on a membership-like program for frequent day-pass customers that will be announced in the second half of 2024.
